Hyundai Heavy closes in on Doosan Infracore acquisition khl.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from khl.com Daily Mail and Mail on Sunday newspapers.
Wed December 16, 2020 - National Edition
Hyundai
Doosan Infracore. Once the acquisition process is completed, the group s affiliate
Hyundai Construction Equipment, combined with Doosan Infracore, will become the No. 5 player in the global construction machinery market, according to HHIG.
Doosan Group selected the HHIG-KDB Investment Consortium as the preferred bidder and reported it to its creditors, including Korea Development Bank. The two sides aim to conclude the main contract by the end of 2020 after two to three weeks of additional negotiations.
HHIG will acquire a 36.07 percent stake in Doosan Infracore, excluding Doosan Bobcat. The acquisition price is said to be in the mid-700 billion won range, which is lower than the market s initial estimate of 800 billion won to 1 trillion won.
Deal faces potential challenges from Korea’s monopoly regulations, and the fate of Doosan Bobcat is uncertain
December 11, 2020
Doosan Group selected Hyundai Heavy Industries Holdings as the preferred bidder for a 36.07% controlling stake in Doosan Infracore Co. The Korea Economic Daily’s sources say the deal would combine Hyundai Construction Equipment Co. and Doosan Infracore to make the seventh-largest global market share, a size similar to Volvo, Hitachi and Liebherr, among the world’s construction equipment manufacturers.
Pulsenews.co.kr reports Hyundai’s bid was nearly 900 billion won ($827.8 million).
The sale of Doosan Infracore is part of the restructuring process for Doosan Heavy Industries & Construction, which was facing a 4.2 trillion won debt load scheduled to come due before the end of the year. The power plant builder took a major hit when the South Korean government chose to depart from nuclear and coal power.
SHARE December 11, 2020
Two Korean construction equipment manufacturers will come together under the same parent, operating as separate independent companies, in a bid from Hyundai Heavy Industries Holdings (HHIH). The conglomerate, parent of Hyundai Construction Equipment (HCE), is moving to acquire a 36-percent controlling stake in Doosan Infracore.
According to a statement from Doosan Infracore North America, the deal would keep the two U.S. suppliers separate:
“Under the terms of the deal, the intent is for Doosan Infracore and HCE to operate as independent companies under HHIH. There are currently no plans to merge HCE or Doosan Infracore. Both companies, along with their people, dealer networks and brands will be kept independent from one another once the sale is final.”
Originally published 9/29/2020; updated 12/11/2020
In early September, Doosan Infracore Co., South Korea’s largest construction equipment maker, announced the opening of preliminary bidding for a controlling stake in its operations. At that time, Hyundai Heavy Industries Group emerged as a top-tier bidder. On December 10th, it was announced that Hyundai Heavy has been selected as the preferred bidder. Respective parties including creditors were informed Thursday morning.
The sale of Doosan Infracore is part of the restructuring process for the beleaguered Doosan Heavy Industries & Construction, which was facing a 4.2 trillion won debt load scheduled to come due before the end of the year. The power plant builder took a major hit when the South Korean government chose to depart from nuclear and coal power.